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Research Alert: CFRA Keeps Hold Opinion On Shares Of Brooks Automation, Inc.

05/11/2021 20:43

12:40 AM EDT, 05/12/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We bump our 12-month target to $102 from $88, 36.7x our FY 22 (Sep.) EPS view, which is near the middle of BRKS's 5-year trading range of 16.3x to 52.5x. We raise our FY 21 EPS view to $2.43 from $1.85 and FY 22's EPS to $2.78 from $2.19. BRKS prints Mar-Q adj-EPS of $0.61 vs. $0.25, exceeding consensus by $0.08, as strong sales growth and operational performance drove the beat. Revenues climbed by 30% to $287M, clearing consensus by $9M, aided by strength in Life Sciences (up 36% Y/Y). Importantly, semi bookings ($286M) and a pick-up in memory were also encouraging. BRKS's results and sequential outlook handily exceeded expectations, but the big story was BRKS's plan to separate its Semiconductor Solutions and Life Sciences Business (slated to close by end of 2021). The spin-off should eliminate the need for both areas to "compete for capital" to fund future growth, but also removes some insulation from ongoing semi-related events (e.g., supply chain constraints) and a meaningful growth lever in the process.